Research On Company Income Tax Accounting Treatment Methods

Accounting come into being and developed to meet the needs of human production and economic management. With the continuous development of social economy, we should not only attach importance to affirming, calculating and reporting the expense and income of production, but also to distributing the profit. Tax as a distribution conducted by the government plays a more and more important role in modern society. Under traditional planned economy, there was neither independent accounting system nor sound reasonable tax system in our country; companies were subsidiaries to the government. With opening to the world, the establishment of socialism market economic system and reform of state-owned company managerial system, companies in our country gradually become the main participants in market economy, which promotes the development of accounting standards system and income tax system. After the reform of tax in 1994, accounting standards differ a lot from tax regulations in affirming income, expense and loss, and the difference between accounting profit and taxable income is growing. This promoted the emergence and development of tax accounting in our country. By comparing several income tax accounting treatment methods, this thesis will put forward some suggestion on what methods should be used.First, the thesis will briefly introduce company income tax and some representative theories of tax base, analyze the interaction between accounting and company income tax, and concisely illustrate the emergence and development of income tax accounting. Then, the writer will analyze some theoretical problems and basic concepts of income tax accounting, including income tax accounting objective, the nature of income tax matters, income tax accounting differences and income tax expense allocation. After that, by the theory and the contrast analysis, the writer illustrates taxes payable method, deferred method, income statement liability method and balance sheet liability method. Last, on the basis of previous illustration, the writer analyzes the current situation in the use of income tax accounting treatment methods, and draws a conclusion that the balance sheet liability method is the most suitable method for us to use.